A contract with a minor.

Grocery, Inc. is a retail grocery store chain based in Any State, U.S.A. Grocery has stores throughout the United States. Tom Green works as the produce manager for the store in My Town, U.S.A. Jeff Fresh, 17 years old, is spending his summer vacation working for Tom in the produce department.

The capacity to enter into a valid contract:

Some people are treated by law incapable of entering into a valid contract, either wholly or partly. They are not obliged to treat it as binding on them.

The reason being this that either they are unable to assess the meaning of the contract in the sense that their rights and obligations to it or the legal status of such persons imposes limits on their ability to contract.

To be valid and enforceable a contract both the parties to the contract must have legal capacity.

Promissory estoppels:
Under common law Estoppels is a legal doctrine whereby party is barred from claiming or denying an argument on the equitable grounds.

It complements the need of consideration in contract law. It is used as defense and provides immunity to the defendant by preventing the claimant or accuser from presenting the statements of fact when they contradicts earlier statements or when the party, by negligence, failed to present them earlier. Estoppels are as a defense may also provide a legal basis for a claim when proof exists that the undermined actions or false promises or the negligence to present the facts caused harm to the defendant.

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(1) Grocery, Inc. is a retail grocery store chain based in Any State; U.S.A. Grocery has stores throughout the United States. Tom Green works as the produce manager for the store in My Town, U.S.A. Jeff Fresh, 17 years old, is spending his summer vacation working for Tom in the produce department.

At the end of the summer, Jeff Fresh had earned enough money to put a down payment on a car. He decided to continue working part time during school to earn money for the car payments. Jeff purchased a car from Smooth Sales Used Cars. Smooth did not ask Jeff how old he was; the salesman assumed he had reached the age of majority. Jeff paid the down payment and signed the contract stating that he would make payments of $200 each month. Six months later Jeff lost his job and could no longer make the payments. Jeff took the car back to Smooth and said he wanted to cancel the contract and that he wanted his money back. What are the possible outcomes? In your explanation, compare and contrast potential legal and equitable remedies.

The capacity to enter into a valid contract:

Some people are treated by law incapable of entering into a valid contract, either wholly or partly. They are not obliged to treat it as binding on them.

The reason being this that either they are unable to assess the meaning of the contract in the sense that their rights and obligations to it or the legal status of such persons imposes limits on their ability to contract.

To be valid and enforceable a contract both the parties to the contract must have legal capacity.

Minors:
In case of minors, persons under the age of 18, the capacity to enter into a valid contract is governed by the common law or the common law as altered by state legislation.
Under common law there are only two types of contract which are binding on a minor:-
1) Contracts for necessaries and
2) Contracts for the provision of beneficial services.

The aims being to:-

Protect minors from harsh or oppressive contracts; but
Allow minors to contract where it is essential or to ...

Solution Summary

Under common law there are only two types of contract which are binding on a minor:-
1) Contracts for necessaries and
2) Contracts for the provision of beneficial services.

But other wise a contract with minor is void 'ab-initio' and it can not be enforced in a court of law.